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Universal Credit

Quick question, when applying for UC if you are a new business and accounts haven't been made up yet, UC asking for monthly income after tax, what do I do? 

Comments

  • [Deleted User]
    [Deleted User] Posts: 4,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    romik said:
    Quick question, when applying for UC if you are a new business and accounts haven't been made up yet, UC asking for monthly income after tax, what do I do? 
     You don't know what you made in the last month? 
  • romik
    romik Posts: 40 Forumite
    Seventh Anniversary 10 Posts Combo Breaker
    Isn't it supposed to be after tax deductions? How do I know what is the figure after tax if accounts haven't been processed yet? 
  • [Deleted User]
    [Deleted User] Posts: 4,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
     It's something you are going to have to learn to do quickly because you have to report your earnings every month 

    https://listentotaxman.com
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 26 May 2020 at 2:43PM
    UC is based on cash accounting so you don't need any accounts. You tell them what you received by way of business income and what you spent by way of business expenditure. The difference is taken as your earnings for the month. Any tax liability is irrelevant, tax is only taken into account when you pay it.

    Full guidance used by DWP is here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/878191/admh4.pdf
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • romik
    romik Posts: 40 Forumite
    Seventh Anniversary 10 Posts Combo Breaker
    calcotti said:
    UC is based on cash accounting so you don't need any accounts. You tell them what you received by way of business income and what you spent by way of business expenditure. The difference is taken as your earnings for the month. Any tax liability is irrelevant, tax is only taken into account when you pay it.
    Understood, thank you. Person on the phone at UC had no idea.
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